In 2008-2009, Which of the Following Weakened the Demand Stimulus

question 145

Multiple Choice

In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?

• A) The unwillingness of the federal government to run budget deficits.
• B) The heavy indebtedness of American households.
• C) A high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth.
• D) The continuation of the high saving rates on the part of Americans.

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Definitions:

Narcoleptic Episode

A sudden and uncontrollable urge to sleep that can occur in people with narcolepsy, often at inappropriate times.

Insomnia

A sleep disorder characterized by difficulty falling or staying asleep.

Stressful Events

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